#6 - The Greenbrier Companies (NYSE:GBX)
The Greenbrier Companies is an interesting play on the railroad industries because it is not a rail carrier. The Greenbrier Companies, Inc. makes and manufactures rail cars and replacement wheels along with operating a vibrant rail-car rental business. While not a carrier itself, it is fundamental to the entire industry the way mid-stream pipelines are to the energy business. You can’t ship via rails without cars and wheels the same way you can’t deliver energy products without pipelines.
When the pandemic struck execs at The Greenbrier Companies, Inc. got nervous. With economic activity on the brink of implosion, they took drastic measures to cut back on costs, improve efficiencies, and preserve capital. Those efforts paved the way for 2nd quarter results that set the company up for accelerated profitability in the coming year.
With a reported backlog greater than 26,000 units business is all but assured for the next 6 quarters. Assuming the economic rebound is as strong as the data suggests the need for cars and replacement components will increase along with it. Until then, investors can sleep well at night knowing the 4.0% dividend is as safe as can be. The Greenbrier Companies, Inc. is a dividend-grower to boot with a 27.5% 5-year compound annual growth rate.
About Greenbrier Companies
The Greenbrier Companies, Inc designs, manufactures, and markets railroad freight car equipment in North America, Europe, and South America. It operates through three segments: Manufacturing; Maintenance Services; and Leasing & Management Services. The Manufacturing segment offers covered hopper cars, gondolas, open top hoppers, boxcars, center partition cars, tank cars, sustainable conversions, double-stack railcars, auto-max ii, multi-max, and multi-max plus products, intermodal cars, automobile transport, coil steel and metals, flat cars, sliding wall cars, pressurized tank cars, and non-pressurized tank cars.
Read More - Current Price
- $60.44
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 3 Buy Ratings, 0 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $63.00 (4.2% Upside)
